When you have acquired more debt than you can possibly repay, bankruptcy could be an option. Of course, bankruptcy should be the final resort, not the first one. Each individual’s financial status is unique, and therefore, they may or may not qualify for bankruptcy. If you are considering the same, it is best to consult one of Las Vegas, NV bankruptcy services. An experienced attorney can review your financial situation and offer a fair assessment of your possible options. In this post, we are discussing all you need to know about filing for Chapter 7 bankruptcy in Nevada.
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Qualifying for Chapter 7
Not everyone can file for Chapter 7 bankruptcy. If you wish to do so, your income should be lower than the median income of Nevada. Your financial history and existing debts will determine if you can consider Chapter 7 or Chapter 13 bankruptcy. The actual process takes about six months, and you have to pay a filing fee.
How does Chapter 7 bankruptcy?
For the uninitiated, Chapter 7 bankruptcy is also called liquidation, and you can discharge most of your debts without being harassed by the lenders and creditors. Chapter 7 allows you to make a fresh start in the truest sense. Common debts that can be discharged include credit card bills, personal bills, medical bills, and unpaid rent. There are also a few exceptions, such as unpaid student loans. Many people wrongly assume that Chapter 7 would mean losing the house and car. As long as you have been paying your installments and intend to do so in the future, you can keep both.
More things to know
Once you have filed for Chapter 7 bankruptcy, you get an automatic stay on payments. This means that your creditors and lenders cannot take further legal action or force you to make payments. Before you make a decision, keep in mind that the Chapter 7 bankruptcy will remain in your credit report for a long time (as long as ten years), and therefore, if you intend to take a personal loan, you may have to pay a high-interest rate. Also, if you had filed for bankruptcy in the past six years, you cannot file for Chapter 7 again.
Having said all that, bankruptcy is not an easy decision, and it makes sense to talk to an experienced attorney soon after you make a decision. Let the attorney help you decide on Chapter 7 and whether it is the right choice for you!